You are on page 1of 36

The Power to Change

THE MONTSERRAT ENERGY POLICY 2016 2030

Prepared for:
Ministry of Communications, Works, Energy & Labour
January 2016

LIST OF ACRONYMS AND ABBREVIATIONS


B/C Ratio
CARICOM
CARILEC
CCCCC
CCREEE
CCS
CDB
CEP
CREDP
CROSQ
C-SERMS
DFID
DOE
DRM
ECE
EEBC

Benefit to Cost Ratio


Caribbean Community
Association of Caribbean Electricity Utilities
Caribbean Community Climate Change Centre
Caribbean Centre for Renewable Energy and Energy Efficiency
Caribbean Community Secretariat
Caribbean Development Bank
CARICOM Energy Policy
Caribbean Renewable Energy Development Programme
Caribbean Regional Organization for Standards and Quality
Caribbean Sustainable Energy Roadmap and Strategy
Department for International Development
Department of Environment
Disaster Risk Management
Energy Conservation and Efficiency
Energy Efficiency Building Code

EIA
ESCO
ESIA
EU
FS
GDP
GIS
GIZ

Environmental Impact Assessment


Energy Service Company
Environmental and Social Impact Assessment
Energy Unit
Feasibility Study
Gross Domestic Product
Geographic Information Systems
Gesellschaft fr Internationale Zusammenarbeit GmbH, or German Agency for International
Cooperation
Global Positioning System
Giga watt = 109 watt
Giga watt hours
Heavy Fuel Oil
Hydropower plant
Heat Rate Improvement Plan
Information and Communications Technology
Intergovernmental Panel on Climate Change
Integrated Resource Plan
Internal Rate of Return
Kilo Watt = 103 watt
Kilo Watt hours
Low Carbon Industrial Manufacturing Park
Liquefied petroleum gas
Minimum Energy Performance Standards

GPS
GW
GWh
HFO
HPP
HRIP
ICT
IPCC
IRP
IRR
kW
kWh
LOCIMAP
LPG
MEPS

MATHLE
MCWEL
MUL
MW
MWh
NAMA
NGO
O&M
OECS
OLADE
OTEC
REETA
RESIM
SOC
SWAC
SWRO
UK
UNDP
USD
WTE
XCD

Ministry of Agriculture, Trade, Housing, Land and the Environment


Ministry of Communications Works Energy and Labour
Montserrat Utilities Limited
Mega Watt = 106 Watt
Mega Watt hours
Nationally Appropriate Mitigation Actions
Non-Governmental Organisation
Operation and Maintenance
Organisation of Eastern Caribbean States
Organisacin Latinoamericana de Energia, or Latin American Energy Organization
Ocean Thermal Energy Conversion
Renewable Energy and Energy Efficiency Technical Assistance
Regional Energy Statistics and Information Management
Standard Offers Contract
Seawater Air Conditioning
Seawater Reverse Osmosis
United Kingdom
United Nations Development Programme
US Dollar
Waste to Energy
Eastern Caribbean Dollar

TABLE OF CONTENTS
LIST OF ACRONYMS AND ABBREVIATIONS ................................................................................................................................. 2
LIST OF TABLES ............................................................................................................................................................................ 5
LIST OF FIGURES .......................................................................................................................................................................... 5
LIST OF PICTURES......................................................................................................................................................................... 5
MESSAGE FROM THE PREMIER ................................................................................................................................................... 6
MESSAGE FROM THE MINISTER OF COMMUNICATIONS, WORKS, ENERGY & LABOUR ......................................................... 2
1.

RATIONALE FOR THE NATIONAL ENERGY POLICY ............................................................................................................. 2

2.

OBJECTIVES OF THE NATIONAL ENERGY POLICY .............................................................................................................. 2

SPECIFIC POLICIES FOR ENERGY TRANSITION AND USE ............................................................................................................ 3


3. POLICIES FOR ENERGY EFFICIENCY AND CONSERVATION ..................................................................................................... 3
4. POLICIES FOR ELECTRICITY SUPPLY ........................................................................................................................................ 4
Public Awareness ................................................................................................................................................................ 4
Solar Energy ........................................................................................................................................................................ 4
Wind .................................................................................................................................................................................... 5
Geothermal ......................................................................................................................................................................... 5
Waste to Energy ................................................................................................................................................................. 6
Promoting Hydrogen and other Fuel Production ............................................................................................................. 6
Other technologies ............................................................................................................................................................. 6
5.

POLICIES FOR END USE SECTORS....................................................................................................................................... 8


Transport Sector ................................................................................................................................................................. 8
Agricultural Sector ............................................................................................................................................................ 10
Industrial and Commercial Sector ................................................................................................................................... 10
Tourism and Hospitality Sector........................................................................................................................................ 10
Domestic Sector ............................................................................................................................................................... 11

6.

POLICIES TO FOSTER INSTITUTIONAL STRENGTHENING ................................................................................................ 12

APPENDICES ............................................................................................................................................................................... 13
Appendix A: Country Profile ................................................................................................................................................. 13
Economic Activities .......................................................................................................................................................... 14
Appendix B: Overview of the Energy Situation ........................................................................................................................ 17
Current Profile of Montserrats energy ........................................................................................................................... 18
Basic Energy Statistics ...................................................................................................................................................... 20
Energy Efficiency Statistics ............................................................................................................................................... 22
4

Diversification of Energy Sources .................................................................................................................................... 23


Carbon Emissions .................................................................................................................................................................. 24
Appendix C: Key Energy Stakeholders ...................................................................................................................................... 25
Appendix D: Identification of the Energy Sectors Strengths, Weakness, Opportunities and Threats ................................. 26

LIST OF TABLES
Table 1Montserrat Key Country Data ....................................................................................................................................... 17
Table 2: Average Electricity Tariffs by Customer Class 2015 .................................................................................................. 21
Table 3: Breakdown of total MUL Customers for Select Years ............................................................................................... 21
Table 4: Carbon Emissions by End Use of Primary Energy Imports ........................................................................................... 24

LIST OF FIGURES
Figure 2: Breakdown of all vehicles in Montserrat by type for 2015. Prepared by: Statistics Department, Ministry of Finance
and Economic Management (MoFEM). ..................................................................................................................................... 9
Figure 3: Breakdown of all Government Owned Vehicles in 2015 by type. Prepared by: Statistics Department, Ministry of
Finance and Economic Management (MoFEM). The highlighted vehicles will be the first select group to be replaced
depending on technologies......................................................................................................................................................... 9
Figure 4: Percentage Contribution of Economic Sectors to Gross Domestic Product ........................................................... 14
Figure 5: Population Growth versus Gross Domestic Product from 1977-2015.................................................................... 15
Figure 6: Growth Rate of Montserrat from 1980 to 2015 ...................................................................................................... 16
Figure 7: Sales across the sectors for 2014 (blue) and 2015 (red) ......................................................................................... 19
Figure 8: Breakdown of Total Imported Fossil Fuel (1.9Million Imperial Gallons) by End Use. Prepared by the Montserrat
Statistical Department. ............................................................................................................................................................. 19
Figure 9: Electricity Sold by Customer Class for Select Years .................................................................................................. 22

LIST OF PICTURES
Picture 1: Photovoltaics and Crown Land Earmarked for Solar Development......................................................................... 5
Picture 2: Geothermal Well (MON1) in Montserrat and Geothermal Plant (Philippines) ....................................................... 6
Picture 3: LED Retrofit and Solar Street Lighting ....................................................................................................................... 7
Picture 4: Volcanic Activity Monitor Siren Powered by Photovoltaics on the outskirts of Plymouth and the No Entry Zone
...................................................................................................................................................................................................... 7
Picture 5: Solar Car Port and Electric Vehicle Charging Stations .............................................................................................. 8
Picture 6: Montserrat Housing Community in Davy Hill .......................................................................................................... 11
Picture 7: The Soufriere Hills Volcano and No Entry Zone ...................................................................................................... 13
Picture 8: Current Generators Utilized for Electricity Production at Montserrat Utilities Limited. ...................................... 23
Picture 9: Diesel Generator Replacement as part of the Montserrat Power Generation Improvement Project funded by
the UK Department for International Development. .............................................................................................................. 24

MESSAGE FROM THE PREMIER

Hon. Donaldson Romeo


Montserrat needs to provide reliable, low-cost, energy services and, at the same time, combat climate change. So we
have formulated a revised robust Montserrat National Energy Policy. This Policy is timely as Montserrat prepares to travel
the road towards self-sustainability. An energy generation mix dominated by indigenous energy sources, efficient use of
energy in all sectors and a twenty-first century energy infrastructure, will all be needed. The Policy represents the desire
of the Montserrat people to improve the country for this generation and future generations.
The Montserrat National Energy Policy is built on four primary objectives. These are; an energy knowledgeable population;
a modern energy infrastructure; a world-class example for renewable energy in small island developing states; all
supported by robust governance, institutional, legal and regulatory frameworks.
To meet the goals and objectives of the Montserrat National Energy Policy the government and people of Montserrat,
along with our regional and international partners, will place great attention and effort in our energy initiatives. This is a
Policy that is of prime importance to the country and will be delivered.
My government and the people of Montserrat express our sincere thanks and gratitude to all who have played a role in
the development of the Montserrat National Energy Policy. This includes the United Kingdom Department for
International Development (DFID), the European Union (EU), the Caribbean Community and Common Market (CARICOM),
the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ), the Carbon War Room Rocky Mountain Institute
(CWR-RMI), the Clinton Climate Initiative (CCI) and Montserrat Utilities Limited (MUL). I commend the Hon. Minister Paul
Lewis for his leadership in advancing this ambitious Policy.

Hon Donaldson Romeo


Premier, and Minister of Finance,
Economic Development and Tourism

MESSAGE FROM THE MINISTER OF COMMUNICATIONS, WORKS, ENERGY & LABOUR

Hon. Paul Lewis


As the Hon. Premier of the Government of Montserrat has indicated, we are exploring ways to develop renewable energy
resources, and improved energy efficiency for our island nation. My target is to have a 100% renewable electricity
generating capacity by 2020. Currently we are receiving assistance from both the Caribbean Development Bank and the
UKs Department for International Development to provide reliable energy to help boost business and tourism. But this is
only the first step in the transformation process.
Recent discussions in the Legislative Assembly explored the topic of Securing Montserrats Energy needs both present
and future. This was of interest to the members of the Assembly, and also to the listening public, and allowed me, as
Minister with responsibility for energy, to secure a number of energy initiatives.
The Premier has confirmed this Governments interest in working in a collaborative approach with local, regional and
international donor and technical partners as we journey on Montserrats energy transition pathway. Together our
ambition is to deliver on our target to turn our country around from 100% fossil fuel dependency to 100% renewable
energy generating capacity.
Although we are only small, we want to benefit from the bigger ideas and new technologies that have worked elsewhere.
Our regional and international partners networks and access to knowledge will help deliver cost effective business
solutions that will remove our reliance on fossil fuels and build technology with low carbon options. Cheap, available,
reliable, renewable energy will help boost business and tourism, driving our economy forward.
Montserrat is a small island and a big-hearted nation. I look forward to achieving our goals in the context of a meaningful
and effective responses to reduce our carbon emissions; develop indigenous, renewable energies; and use our energy
efficiently and effectively.
Yours sincerely,

Hon Paul Lewis


Minster of Communication, Works,
Energy and Labour
2

1. RATIONALE FOR THE NATIONAL ENERGY POLICY


This document presents the Montserrat Energy Policy for 2016-2030, which is structured and designed to
ensure that by 2030, Montserrat has:
Reliable, low-cost, sustainable provision of energy services matched to the societal and development needs
of Montserrat over time, equitably provided to all sectors of the society, and based on robust, diverse energy
sources and distribution systems that utilize appropriate generation technologies.
The Montserrat Energy Policy 2016 2030 is built on a number of fundamental elements
An energy sector that contributes to the international competitiveness of the productive sectors of the economy
An energy sector that provides reliable, affordable energy supplies to all consumers with the capacity to meet
long-term growth in demand. An energy sector that is environmentally sustainable and built on the complete
use of cost-effective renewable energy sources. An energy sector that is supported by high levels of awareness
among Montserratians of the importance of energy and its use in their daily lives and the contribution that each
individual can make towards energy conservation efforts, thereby supporting the sustainable energy goals of
Montserrat
An energy sector in which there is reduced energy intensity through the efficient production, delivery and use
of energy, supported by increasing application of appropriate energy efficiency technologies and better energy
management practices.
An energy sector that is based on comprehensive, planning-based and research driven approaches to energy
transition, including implementation of pilot and demonstration projects, based on successful models so that
individual clean energy projects are part of a fully integrated, climate-resilient energy transition toward clean
sustainable energy for all. An energy sector with an appropriate institutional framework to support and facilitate
the effective implementation of the policy supported by all relevant stakeholders, including the public and
private sectors, educational institutions and non-governmental and community based organizations.
The implementation of the Power to Change, the Montserrat Energy Policy 2016 2030, will help the Montserrat
economy become more productive, competitive and resilient.

2. OBJECTIVES OF THE NATIONAL ENERGY POLICY


The Policy represents the desire of the Montserratian people to improve the country for this generation and future
generations.
There are four primary objectives of the Montserrat Energy Policy
1.
2.

3.

4.

Montserratians are well aware of the importance of energy conservation, use energy wisely and continuously
pursue opportunities for improving their use of energy, with key economic sectors embracing eco-efficiency.
Montserrat has a modern energy infrastructure with clean and secure generation capacity, ensuring that energy
supplies are reliably and affordably available in homes, communities and the productive sectors on a sustainable
basis.
Montserrat is a world-class example for renewable energy use, providing secure energy supplies at
internationally competitive prices and a small carbon footprint, capable of supporting medium- and long-term
economic growth, social development and environmental sustainability.
Montserrat has a well-defined and established governance, institutional, legal and regulatory framework to
support the future developments in the energy sector, underpinned by high levels of consultation and citizen
participation in this sector that is the cornerstone of the plans to restore prosperity and sustainability to the
island.

The primary objectives are supported by supplemental objective components:


Increase energy efficiency and conservation: The Government will increase energy efficiency and conservation where
economically viable leading to a reduction in fossil fuel import and ensuring energy access to all citizens.
Improve domestic energy supply: The Government will secure efficient energy, including electricity supply, integrating
renewable energy where practical and economically feasible.
Improve end use sectors: The Government will take action to utilize and encourage sustainable energy practices within the
individual economic sectors of Montserrat. This entails a reduction in energy consumption per unit of economic output
in all sectors of the economy.
Foster institutional strengthening: The Government will take the necessary actions to restructure administrative sectors
and ensure the institutional requirements to enable an energy transition. This includes the use of regulatory and fiscal
measures to encourage renewable energy generation and energy efficiency measures. Lowering the cost to the citizens
will require the structural reformation of governments administrative apparatus and procedures.

SPECIFIC POLICIES FOR ENERGY TRANSITION AND USE


Sections 3, 4, 5 and 6 set out how the Government of Montserrat (GOM) will pursue the objectives of the policy in the
areas of fossil fuel management, electricity supply and energy efficiency throughout all sectors of the islands economy.

3. POLICIES FOR ENERGY EFFICIENCY AND CONSERVATION


The Government of Montserrats policy is to encourage and direct more efficient use of energy in all sectors of the
economy through conservation, the use of energy efficiency technologies and better demand-side management and
energy use in buildings. GOM will collaborate with the Montserrat Utilities Limited (MUL) to implement its policy by:

Creating public education programs aimed at the improvement of energy consumption patterns of all consumer
classes in end-use sectors
Researching the consumption patterns of all sectors to improve conservation and energy efficiency practices
Creating energy performance standards and energy labels to encourage the use of energy efficient appliances
and technology by all consumers and sectors of the economy
Requiring retailers to inform customers on energy efficiency appliances and provide energy labels
Collaborating with the Ministry of Agriculture, Trade, Housing, Land and the Environment (MATHLE) to assess
the short, medium, and long term impacts of energy efficiency and conservation efforts
Developing and improving energy building standards to be enforced through the establishment of Energy
Efficient Building Codes (EEBC)
Incentivizing and conducting energy audits for existing private and public sector buildings
Providing fiscal incentives for individuals and businesses to conduct energy audits and utilize energy efficiency
products
Restructuring the portfolio of energy services offered by MUL to operate as an Energy Service Company (ESCO)
Reporting energy efficiency progress in yearly national economic reports and statistics to establish national
benchmarks for energy use
Reducing carbon dioxide emissions associated with electricity production and consumption in all sectors of the
economy
Working with Latin America Energy Organization (OLADE) to collect data and manage information on energy
efficiency gains from various stakeholders, including MCWEL and MUL and publish reports including indicators
of successful energy efficiency implementation

4. POLICIES FOR ELECTRICITY SUPPLY


Currently, Montserrats electricity supply is 100 percent diesel based and the price of electricity averaged EC$ 1.30 /kWh
(US$ 0.49/kWh) in 2014. The Government of Montserrats policy is to provide reliable, low-cost sustainable energy
services through energy efficiency, and the strategic substitution of imported fossil fuels with domestic renewable energy
sources. A top priority for the government is to minimize the total system costs of electricity throughout the islands
transition to 100 percent renewable energy. Montserrat has a total peak demand of 2.1 MW on a grid with a capacity of
5.4 MW. GOM will collaborate with the Montserrat Utilities Limited (MUL) to implement its policy to:

Encourage the increased efficiency in power transmission and distribution to lower operating costs for the utility
and ensure no losses are passed onto the customer base
Establish line loss targets and regional utility benchmarking system in coordination with the Association of
Caribbean Electric Utilities (CARILEC)
Establish heat rate improvement program (HRIP) to sustain efficient operation of thermal generation throughout
the transition to 100 percent renewable energy based supply. This will include the development of dispatch
protocol based on discovered and utilized energy resources
Establish an Integrated Resource Plan (IRP) for the next 20 years of electricity production to identify least cost
pathways and optimize resource utilization
Work in collaboration with Caribbean regional programmes for energy planning to ensure advanced energy
system models are utilized to provide decision making analysis
If appropriate, establish a task force and protocols for the selection of distributed renewable energy generation
through Standard Offers Contracts (SOCs) for self-generation. This task force will oversee tariffs, integration
impact assessment, and approvals of any distributed generation. Distributed generation and prosumers will be
at the discretion of the Montserrat Energy Unit after an island wide distributed energy grid stability study
Research the impacts of demand side management and self-generation on the business model of the utility

Public Awareness

Collaborate with Regional and International partners and governments to develop an energy curricula for the
local school system
Develop renewable energy awareness programmes, knowledge workshops and seminars for Government
employees via the Montserrat Energy Unit and MUL
Develop energy awareness and capacity building campaigns via social media, newspapers, radio and television
broadcasting

Solar Energy

Collaborate with the CARICOM Secretariat as well as development partners to identify technical requirements
for integrating grid-tied solar power into the conventional diesel power system
Catalogue government owned facilities and institutions with critical loads to be met by solar energy pilot projects
such as hospitals, schools, the local abattoir
Identify any potential off-grid opportunities for government owned or local businesses
Identify the opportunity for solar thermal energy technologies and create fiscal incentives to promote their
disbursement in the residential, commercial and industrial sectors of the island and public buildings

Picture 1: Photovoltaics and Crown Land Earmarked for Solar Development


Wind

Collaborate with development partners to conduct wind resource assessments of the island and document the
islands wind regime
Create and maintain a database for wind maps and wind data to be periodically updated

Geothermal

Collaborate with development partners to continue the development of the geothermal potential of the island
Work with the United Kingdom Department for International Development (DFID) to complete the drilling of
three geothermal wells and identify a reinjection site
Review current legislation and establish new legislation for the definition of the resource and the ownership and
use of that geothermal resource.
Establish a complete legislative framework for geothermal energy use over the next 40 years
Collaborate with development partners to procure geothermal expertise for all phases of the procurement
process
Conduct techno-economic feasibility studies to evaluate parameters for commercial geothermal development,
plant sizing, grid integration and optimization within Montserrats establish electricity system
Facilitate the design, construction and operation of plant that meets countrys demand
Build national human capacity to support the plant
Develop a roadmap for geothermal expansion and low carbon technology and product exportation

Picture 2: Geothermal Well (MON1) in Montserrat and Geothermal Plant (Philippines)

Waste to Energy

Identify the potential waste-based technologies to utilize for Montserrats waste


Conduct studies on the islands waste stream and characterization.
Develop an integrated resource management program for waste
Create public awareness programs to promote better waste practices
Conduct feasibility studies on the use of organic waste, agricultural residues, liquid effluents and municipal waste
for power generation

Promoting Hydrogen and other Fuel Production

Utilize excess geothermal energy to produce hydrogen and other global commodities such as methanol
Conduct feasibility studies to assess Montserrats potential to be a net exporter of hydrogen to the fuel cell
industry
Other technologies
The GOM intends to explore other opportunities for renewable energy and their suitability for the islands context. These
include marine technologies such as desalination, Sea Water Air Cooling (SWAC) and Ocean Thermal Energy Conversion
(OTEC). The GOM will continue to follow international developments and progression in global technologies. The GOM
also sees the opportunity to establish the island as an area for research and design into new technologies. In addition, the
experience of Montserrat and volcanology presents a unique opportunity for regional and global learning. The GOM
intends to establish a Center for Excellence and educational opportunities for renewable energy, energy efficiency,
building community resilience and effective disaster risk management (DRM).
The GOM will work to develop and incorporate information and communications technologies into the energy transition.
This requires working closely with development partners and regional organizations such as the Association of Caribbean
Electric Utilities (CARILEC) to communicate energy best practice throughout the region.

The GOM will work to replace all streetlights on island with solar and Light Emitting Diodes (LED). This initiative will allow
the GOM to illuminate areas along the road system thus increasing safety and reducing consumption of energy.
Smart Grid development will be a priority for the GOM, As such, the government will work with regional development
partners to develop regional and national roadmaps for the implementation of smart grids. This will depend on the
development of energy regulation to foster smart grid development, public awareness campaigns and establish
Montserrat within as a center for excellence where regional skills can be developed. Smart Grids and renewables may
also play a key role in emergency response mechanisms for the island.

Picture 3: LED Retrofit and Solar Street Lighting

Picture 4: Volcanic Activity Monitor Siren Powered by Photovoltaics on the outskirts of Plymouth and the No Entry Zone

5. POLICIES FOR END USE SECTORS


The Montserratian economy has a variety of economic sectors with their own needs as end users of indigenous energy.
These sectors are: Transport, Agriculture, Industrial and Commercial, Domestic, Tourism and Hospitality. Sector-specific
provisions will help the Government of Montserrat to refine efforts for a national transition.
Transport Sector

Picture 5: Solar Car Port and Electric Vehicle Charging Stations

The Government of Montserrat (GOM) will identify policy opportunities and strategies for sustainable transportation
practices. The government will collaborate with all ministries on refining their initiatives. The GOM will collaborate with
all stakeholders to implement its policy to:

Develop a robust and integrated transportation sector


Improve the efficiency with which fuel is utilized through conservation and demand management programs
Establish energy baseline for vehicle stock in Montserrat
Promote the development of electric, hybrid electric, and advanced vehicle technologies
Conduct studies on the regulatory changes, infrastructure development, and potential incentives for green
transport
Conduct feasibility and cost benefit analysis and implementation scenarios for effective public transport
Procure private partners to implement business plan for public transportation through Public Private Partnership
(PPP)
Establish transportation emission standards for vehicles imported to the islands
Amend legislation and implement tariffs for fuel efficient vehicles
Improve the efficiency cost-effectiveness of the public transport system
Implement strategic plan for integrated transport planning, route selection and decision support
Utilize Information and Communications Technology (ICT) tools such as Geographic Information Systems (GIS)
and Geographic Positioning Systems (GPS) to make transportation routes more energy efficient
Facilitate public awareness campaigns and stakeholder dialogues to promote efficient transportation
Investigate the potential for using renewable energy in the ferry system to Montserrat
8

Vans
Road Rollers
Tractors
Motorcycle
Mokes
Forklifts
Backhoes
Rough Riders
Graders
Loaders (Large)
Loaders (Mini)
Tow Tractors
Tankers
Dump Truck
Lorries
Jeep
Omnibus
Pickup
Cars

15
3
7
26
1
7
8
4
1
7
4
6
13

93

14

1039

119

257

200

1028
400

600

800

1000

1200

All Island Vehicles 2015

Figure 1: Breakdown of all vehicles in Montserrat by type for 2015. Prepared by: Statistics Department, Ministry of Finance
and Economic Management (MoFEM).
Vans
Road Rollers
Tractors
Motorcycle
Mokes
Forklifts
Backhoes
Rough Riders
Graders
Loaders (Large)
Loaders (Mini)
Tow Tractors
Tankers
Dump Truck
Lorries
Jeep
Omnibus
Pickup
Cars

2
3
6
5
0
3
1
1
1
0
3
2
9
3
1
30
6
32
8
0

10

15

20

25

30

35

Number of Government Vehicles 2015

Figure 2: Breakdown of all Government Owned Vehicles in 2015 by type. Prepared by: Statistics Department, Ministry of
Finance and Economic Management (MoFEM). The highlighted vehicles will be the first select group to be replaced depending
on technologies.
9

Agricultural Sector
The Government of Montserrat (GOM) will identify policy opportunities and strategies for sustainable agricultural
practices. The government will collaborate with the Ministry of Agriculture, Trade, Housing, Land and the Environment
(MATHLE) on such initiatives. The objective is to promote energy efficiency in agricultural methods and utilize renewable
energy where possible within the sector. MCWEL will collaborate with the MATHLE to implement its policy to:

Conduct studies on agricultural best practice and energy efficiency practices


Identify energy efficient methods of irrigation and water storage
Implement food storage methods that are energy efficient
Design and recommend a strategy for Efficient Energy Use in Agriculture
Develop targeted educational campaigns and training for farmers around best practice
Utilize renewable energy for farming practices where possible
Identify the potential for equipping the local abattoir with renewable energy
Create incentive program for farmers to use energy efficiency and renewable energy in their operations

Industrial and Commercial Sector


Since the volcanic disaster started in 1995, Montserrats economy has been limited with few exports. The Government of
Montserrat (GOM) plans to expand and diversify the economy utilizing renewable energy as an indicator of a progressive
energy system to attract foreign investors. The objective is to market the island as a green economy to promote commerce
and industry. The GOM will collaborate with development partners and the Office of the Premier to:

Encourage sustainable methods of operation like waste reduction, material re-use and recycling
Incorporate energy best practice into all aspects of business
Design and implement targeted education programs to disseminate knowledge on the benefits offered under a
new Energy Conservation and Efficiency Policy (ECEP) and Action Plan (ECEAP) with a focus on commercial
buildings
Conduct demand analysis for future and current scenarios of industrial and commercial activities
Implement voluntary industrial and commercial energy efficiency standards
Support and develop a Low Carbon Industrial Strategy
Develop Low Carbon Industrial Manufacturing Parks (LOCIMAP)
Utilize regional models to develop tax incentives for attracting future development

Tourism and Hospitality Sector


The government plans to make the tourism and hospitality sector a low carbon footprint sector and demonstration to the
rest of the world. A strong focus will be on making buildings energy efficient with minimum energy performance standards
and certification for the industry. GOM intends to market the island as an eco-friendly tourism destination, and will:

Conduct energy audits of accommodation stock


Create business plans for hospitality and tourism establishments
Create programs for employee energy awareness
Revise tax legislation to provide incentives for energy efficiency and renewable energy
Implement a retrofitting program for guest houses and hotels
Incentivize for energy using tariff modifications
Develop a certification and recognition program for efficient resource use in the sector
Identify ways for tourism establishments to implement renewable energy into business
10

Domestic Sector
The domestic sector is responsible for 53% of electricity consumption in Montserrat. The Government of Montserrat
(GOM) will work households to ensure they have access to diversified supply of energy efficiency appliances. Campaigns
to promote responsible energy use will be at the forefront of GOMs policy. The GOM will collaborate with MUL and
development partners to:

Conduct demand side analysis to understand consumption patterns within the sector
Catalogue energy efficient appliances suitable for Montserrats energy system
Establish an energy baseline for the sector to measure improvements against
Offer home energy audits
Collaborate with stakeholders to design and implement energy awareness campaigns to promote energy
efficient products, best practice and the progress of the renewable energy transition
Adopt standards for the promotion and use of efficient lighting, refrigeration, air conditioning
Adopt the framework for regional energy performance standards
Collaborate with regional and international partners to develop the standard for solar water heater use in
Montserrat
Identify and implement fiscal incentives for energy efficient products, passive solar thermal systems and public
buy in
Establish the regulatory and legislative framework to support energy efficiency, conservation and renewable
energy within the domestic sector

Picture 6: Montserrat Housing Community in Davy Hill

11

6. POLICIES TO FOSTER INSTITUTIONAL STRENGTHENING


The Government of Montserrat (GOM) will build the necessary institutional framework to facilitate an energy transition
to 100 per cent renewable energy. This tasks will require structural changes within the Governments framework of
agencies coupled with the development of new regulations, legislation and policies. The GOM wants to build an adaptive
model of governance that facilitates the energy needs of its citizens. The Ministry of Communications, Works, Energy and
Labor (MCWEL) has the current portfolio responsible for energy developments within the country. However, the GOM
will work to create the Montserrat Energy Unit (MEU) dedicated to all energy matters and implementation on island. This
is one of the first tasks at hand for the GOM in moving towards 100 percent renewable energy. The GOM will collaborate
with regional and international development partners to:

Build an adequately staffed and empowered energy unit


Facilitate training opportunities for officers within the energy unit
Create a transparent legal framework to include the Montserrat Energy Unit (MEU)
Provide the legislative, institutional and financial support for implementation of the Montserrat Energy Policy
(MEP)
Take administrative actions to prioritize the needs of the Montserrat Energy Unit
Hire staff with the adequate skill sets for the implementation of renewable energy
Collaborate with the CARICOM Secretariat to develop energy statistics and information management and create
performance indicators for the MEU
Build human capacity in coordination with other government agencies
Form cohesive policies in collaboration with the policy agenda of other government agencies
Support fiscal and economic measures to successfully implement the MEP
Maintain an Experts Database of external consultants capable of conducting implementation tasks and planning
Create a dedicated desk for geothermal energy within the Montserrat Energy Unit
Collaborate with the Ministry of Finance to conduct studies such as cost benefit analysis, tariff reviews and
economic assessments
Conduct due diligence on the ramifications of new energy tariffs and import tariffs
Collaborate with MATHLE to assess best practice in Environmental and Social Impact Assessments (ESIA) for large
scale energy projects
Montserrat Energy Unit will monitor the planning, implementation and commissioning of energy projects on
island
Implement an Energy Efficient Building Code (EEBC) and Energy Standards and Labeling for appliances
Promote regional coordination and workshops
Align with the CARICOM Regional Organization for Standards and Quality (CROSQ) standards and create a
national standard to be enforced through the Montserrat Energy Unit
Secure the funding for implementation of the MEP
Develop Nationally Appropriate Mitigation Actions (NAMA) and climate change strategy
Design project documents, applications, terms of reference to procure international funding support
Constantly engage with stakeholders to gain feedback on the performance and initiatives of the Montserrat
Energy Unit

12

APPENDICES
Appendix A: Country Profile
Montserrat is a small island developing state of 102.6 square kilometers situated in the Leeward Island chain of the Eastern
Caribbean. Montserrat lies between 1640and 1650North Latitude and 629and 6215West Latitude between Antigua
and Guadeloupe. Montserrat is one of fourteen territories described as British Overseas Territories. This means the island
is dependent on the United Kingdom and does not possess full political independence. Such territories receive economic
aid from the United Kingdoms Department of International Development (DFID).
Montserrat has a population of approximately 5215 people1. In 1995, the Soufriere Volcano which is located in the
Southern part of Montserrat erupted after a long period of silence. This catastrophe resulted in the destruction of the
southern part of the island including the capital Plymouth. This period of volcanic activities lasted until about 2003. More
than half of the former population left the island to other countries as a result of this series of eruptions. Currently, the
population growth in the last 5 years averages 0.2 % per annum 2.

Picture 7: The Soufriere Hills Volcano and No Entry Zone


Montserrat became a full member of CARICOM since the 1st May 1974 and continued to become a member of the OECS.
As such, the island has received technical and financial assistance in areas such as education, health care, technology,
disaster management and law.
Despite its small size, the ecological/biological resources of Montserrat are of national, regional and global conservation
importance because they support inter alia assemblages of single-island and regional endemic species of fauna and flora,
as well as eight globally threatened vertebrate and plant species.

1
2

Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat
Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat

13

Economic Activities

Other
Community,
Social &

Agriculture,
Livestock and

Mining & Quarrying


2%

Manufacturing
2%
Electricity
2%
Water
Construction
1%
6%
Wholesale & Retail
Trade
7%

Health and Social Work


6%
Education
4%

Hotels & Restaurants


3%
Transport and Storage
4%

Public Administration,
Defence & Compulsory
Social Security
33%

Communications
3%

Real Estate, Renting


and Business Activities
18%

Financial
Intermediation
5%

Figure 3: Percentage Contribution of Economic Sectors to Gross Domestic Product3


Economic activities in Montserrat are consisting of agriculture, industry and services including tourism. The severe
volcanic activity has put a damper on this small, open economy. The catastrophic eruption in June 1997 closed the airport
and seaports, causing further economic and social dislocation. Two-thirds of the 12,000 inhabitants fled the island. Some
began to return in 1998 but a lack of housing limited the number of returners. The agriculture sector continued to be
affected by the lack of suitable land for farming and the destruction of crops. Today, prospects for the economy depend
largely on developments in relation to the volcanic activity and on public sector construction activity. Half of the islands
landscape remains uninhabitable.
In January 2013, the EU announced the disbursement of a $55.2 million aid package to Montserrat in order to boost the
country's economic recovery, with a specific focus on public finance management, public sector reform, and prudent
economic management4.

Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat and Delta Petroleum Limited,
Montserrat
4 European Union Delegation to Barbados and the Eastern Caribbean Press Release No. 4/2013

14

Figure 4: Population Growth versus Gross Domestic Product from 1977-20155


Montserrat like many small island developing states is economically, socially and physically vulnerable by its very nature.
That is, the island is:

economically remote
import-dependant as it is unable to produce all the goods and services to meet domestic needs
dependent on tourism and overseas aid to generate foreign exchange to balance this demand for imported
goods and services
land constrained due to its small physical size and partly banned because of the volcano
affected by impacts of climate change, as sea level rise, changes in the intensity and perhaps frequency of
extreme weather events, more severe storm surge and change in rainfall patterns

The National Energy Policy (NEP) of Montserrat was drafted in 2008 for the period until 2027. This NEP already suggested
the advancement of renewable energy and energy efficiency development. When drafted in 2008, geothermal and wind
energy development was prioritized in the energy action plan over 5 years from 2008 to 2012 which was called Wave 1.
The following 5 year-periods dealt with transforming the transport sector (Wave 2), future energy options (Wave 3) and
greening Montserrats economy (Wave 4). Apart from 2 geothermal well drillings and wind studies no physical investment
activities have been implemented. Especially a designated Energy Unit had not been implemented as foreseen in the NEP.

The 1995 disaster saw the reduction of the population to below half the original size. GDP when observed as a metric in itself looks high for a small
nation. However this is provided through assistance from the United Kingdom to help rebuild the country and maintain economic activity since the
mass exodus of most citizens. As demonstrated in Figure 3: Percentage Contribution of Economic Sectors to Gross Domestic Product
most of the GDP is utilized in public administration and real estate. A switch to fossil fuels may reduce the funds spent on the import of fossil fuel
products thus building resiliency and providing the opportunity for investment in green industries on island. The objective is to market the islands
indigenous energy to attract investors and encourage the return of Montserratians to their home.

15

Recent moves by the government of Montserrat to support investment in large geothermal production will respond to
the challenges to the economy coming from emigration and the crackdown on offshore financial centers. Through 2017,
it is believed that the expansion of the geothermal energy sector could keep real GDP growth positive given the size of
the investment relative to the island's economy. Thereafter, however, Montserrat's real GDP might enter an extended
period of contraction as poor infrastructure and competition from the rest of the region tempers expansion of the island's
tourism industry.
In addition, the growth of the offshore financial sector, which has supported the Caribbean countries' growth, will be
limited as the US, UK and EU implement crackdowns and threaten sanctions on countries where financial regulation is
deemed too weak. These factors leads to 2015 and 2016 real GDP growth forecasts of 1.5% and 1.0% before the economy
could enter a period of prolonged recession, averaging a 0.8% contraction between 2017 and 2019. Greening the
economy of Montserrat based on a sustainable and affordable energy production and efficiency could be a pathway for
avoiding economic still-stand.

60.00
50.00
40.00
30.00
20.00
10.00

2015Pj

2010

2005

2000

1995

1990

1985

(10.00)

1980

(20.00)
(30.00)

Figure 5: Growth Rate of Montserrat from 1980 to 20156

Montserrat has experienced contractions in growth that coincide with global events such as the 1991 recession. More noticeable is the fall out of
the 1995 volcanic disaster where the growth rate reached a low of -20 growth. This contraction lasted until 2001. Again in 2010, Montserrat faced the
fallout of the global economic recession and high fuel prices of the 2008-2009 global oil crisis. This was exacerbated by the 2010 volcanic activity and
eruption.

16

Population

5.215

Population per sq. Km

51

Population growth (%)

0.5%

Literacy rate (%)

99

Life expectancy (years)

74.14

Land area (km2)

102.6

GDP (US$ million, PPP)

83.7

GDP real growth

3.5 %

GDP per capita (US$, PPP)

8.500

Consumer electricity price (US$ per kWh)

0.49

Table 1Montserrat Key Country Data7

Appendix B: Overview of the Energy Situation


Like the majority of CARICOM countries, Montserrat is ideally suited for development of cost-effective, indigenous
renewable energy systems, with significant geothermal, solar, wind and other resources. Nonetheless, the existing energy
supply continues to be completely dependent on imported fossil fuels; the country has high levels of electricity coverage
with operational efficiency but increasing maintenance costs. It also experiences high supply costs because of limited load
concentration, relatively high cost of low volume generation plant and high fuel transport costs. Montserrat has a
vertically integrated electricity utility, Montserrat Utilities Limited (MUL), which handles the electricity needs of the island.
However, because of the small size and limited institutional capacity in Government for energy planning and energy
management, the regulation of energy remains elementary.
The price of electricity (July 2015) in Montserrat is around XCD 1.00 (USD 0.37) per kWh, which is among the highest in
the Region8. A significant portion of the cost can be attributed to the fuel surcharges of around XCD 0.50 (18.5 cents USD)
per kWh, which even in the current period of low global oil prices constitute half of the charges9. The importation
of expensive diesel for power generation is causing high electricity bills and concomitantly, increases the overall cost of
living to Montserratians and reduces the attraction of Montserrat to energy-intensive sectors. Under the existing energy
situation, the paying of energy bills has been difficult and continues to divert funds from other needs related to
maintaining the level of economic status on the microeconomic level whilst inhibiting the ability of the country to address
its goal of growth and development on the macro-scale.
Over the last five years, there has been collaboration between the Government of Montserrat and the UK Department
for International Development (DFID) in addressing the unsustainable energy situation in the country but much of the
focus in the proposed transformation of the energy sector in Montserrat has been on the substitution of imported diesel
with geothermal power generation. Only recently, however, has cost-effective solar PV and wind options, as well the
7

Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat
Montserrat Utilities Limited (MUL)
9
Montserrat Utilities Limited (MUL)
8

17

critical areas of energy efficiency and energy conservation, been investigated more thoroughly to provide affordable
alternatives and significant opportunities to reduce diesel imports.
This requires simultaneous pursuance of the twin objectives for 1) improvement in power generation, and end-use
reliability and efficiency; and 2) increasing the share of power generation provided by indigenous renewable sources,
focusing initially on an integrated mix of geothermal and solar. Wind and (possibly) waste, might assist in any further
diversification of energy and in dealing with local geographical issues.

Current Profile of Montserrats energy


The following provides a snapshot of Montserrats energy sector and sets the base for the goals and strategies that have
been articulated in this Energy Policy. Montserrats energy sector can be described as being completely (100%) dependent
on fossil fuels, with high per capita carbon emissions 12.98 tons per capita and looking at figures for 2011 Montserrat
was in the worst 20 in the world10.
There are three primary sources of fossil fuel energy:
Cooking Gas (Liquid Petroleum Gas) for domestic consumption in cooking appliances LPG
Diesel for heavy vehicles, the Ferry, and for the generation of electricity DSL
Gasoline (petrol for cars and light vehicles) GSL
All of these are
consistent at11:

LPG

DSL

GSL

imported onto Montserrat by Delta Petroleum Limited. Sales across 2014 and 2015 have been fairly
165,000 Imperial Gallons
1,200,000 Imperial Gallons
750,000 Imperial Gallons

10

World Bank - CO2 emissions (metric tons per capita) 2011 data
Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat and
Delta Petroleum Limited, Montserrat
11

18

Figure 6: Sales across the sectors for 2014 (blue) and 2015 (red)
Cooking

Electricity
45%

Transportation
47%

Figure 7: Breakdown of Total Imported Fossil Fuel (1.9Million Imperial Gallons) by End Use. Prepared by the Montserrat
Statistical Department.

19

Basic Energy Statistics12

Montserrat has 100% electricity coverage of residential and commercial properties.

The country has a high level of service reliability, averaging approximately 99.85% (first eight months of
2015) amounting to 13 hours of non-coverage for the year.

Installed capacity in Montserrat is currently greater than the demanded peak capacity. Installed capacity is
approximately 5.44 MW and peak is 2.1 MW (Sep 2015).

Cost of electricity to the domestic consumer is around US 37 cents per kWh (Sep 2015).

Each Montserratian household uses on average approximately 2008 kWh of electricity annually
Montserrat has approximately 2800 households.

Households consume approximately 52% of all electrical power.

Although no surveys have been carried out it is thought that the majority of the energy consumed by
households is for cooling or cooking purposes.

Peak demand for the island is currently 2.1 MW and typically takes place between 11am and 12 noon. At
night demand is approximately 1.2 1.5 MW.

Technical losses are at 12.3%.

12

Montserrat Utilities Limited (MUL)


20

Average Electricity Tariffs


XCD
Domestic Tariff
for Customers
below 75 KW

Domestic Tariff
for Customers
above 75 KW

Commercial
Customer Tariff

US$

Fuel Surcharge

EC$0.86

$0.32

Domestic < 75 units

EC$0.48

$0.18

TOTAL

EC$1.34

$0.50

Fuel Surcharge

EC$0.86

$0.32

Domestic > 75 units

EC$0.55

$0.20

TOTAL

EC$1.41

$0.52

Fuel Surcharge

EC$0.86

$0.32

Commercial

EC$0.59

$0.22

TOTAL

EC$1.45

$0.54

Fuel Surcharge

EC$0.86

$0.32

Industrial

EC$0.52

$0.19

Industrial
Customer Tariff
TOTAL
EC$1.38
Table 2: Average Electricity Tariffs by Customer Class 2015

$0.51

year

1988

1994

2011

2012

2013

2014

2015

Domestic

4013

4500

2673

2726

2803

2856

2882

531

696

614

627

619

639

682

32

19

15

16

18

20

3374

3444

3519

3590

Commercial
Industrial

Street Lights
65
6
12
Total MUL
Customers
4641
5221
3305
Table 3: Breakdown of total MUL Customers for Select Years

21

16,000
14,000
12,000
MWh
Sold

10,000
8,000
6,000
4,000
2,000
0

Other Own/Use External to PS

1988

1994

2011

2012

2013

2014

2015

628

95

596

706

360

475

429

327

177

178

176

Industrial

3,435

763

73

73

19

18

32

Commercial

5,330

6,499

4,648

4525

4,778

4,816

5139

Domestic

5,835

8,174

5,392

5455

5,628

5,343

5,504

Street Lights

Figure 8: Electricity Sold by Customer Class for Select Years13


Energy Efficiency Statistics
Montserrat has one utility company. Montserrat Utilities Limited (MUL) is a vertically integrated utility and has
responsibility for generating, transmitting and distributing electricity; and producing and distributing water. The company
is the sole concessionaire for electricity and water distribution. It is a parastatal company limited by shares, and both
shares are owned by the Government of Montserrat. MUL produces about 12,282 MWh of electrical power annually 14.
In general, approximately 10,780 MWh of electricity is utilized annually by the end users 15. This is an energy use of around
2.15 MWh per person16. This represents about 45% of the total fossil fuel based usage over the year, with the remainder
being used for travel and cooking. So in round figures it might be assumed that Montserrat uses (in total) about 4.81 MWh
per person per year17. If Energy Efficiency is calculated as units of energy per unit of GDP, The United Nations indicates
that Montserrats 2013 Gross Domestic Product (GDP) was $US 11,565. So the Energy Efficiency is 384 W which compares
with the highest Energy efficiency Caribbean countries of the Bahamas (615 W) and Trinidad and Tobago (614 W)
respectively18.

13

Industrial Customers have shrunk significantly since the 1980s and even further after the 1995 volcanic eruption.
Montserrat Utilities Limited
15 Montserrat Utilities Limited
16
Montserrat Utilities Limited
17
Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat
18 Data provided by Statistic Department, Ministry of Finance and Economic Management (MoFEM), Montserrat
14

22

Diversification of Energy Sources


Montserrat has no existing renewable energy power in its current electricity supply.
Over the last five years however, there has been interest and activity towards the development of geothermal power
generation.
Between March and September of 2013, Montserrats first two geothermal wells were drilled to depths of 2,300 and
2,900 yards, striking temperatures of more than 260C. While testing is still ongoing, the initial results suggest that the
fluid flowing from the wells will be able to generate significant amounts of geothermal power.
In the last year, plans are also being developed for the integration of up to 1 MW solar photovoltaic system into the new
power station in Brades. This has the potential to significantly reduce the amount of diesel used in power generation and
provides a clear and present opportunity for Government to directly address the high fuel surcharge in the electricity
tariff (Table 2). A typical photovoltaic diesel hybrid system can feed solar power into the local grid at up to 60% of the
installed diesel generator set capacity.

Picture 8: Current Generators Utilized for Electricity Production at Montserrat Utilities Limited.19

19

These generators are in the process of augmentation with one medium speed higher efficiency generator.

23

Picture 9: Diesel Generator Replacement as part of the Montserrat Power Generation Improvement Project funded by the UK
Department for International Development20.
Carbon Emissions
Montserrat is in full support of the reduction of carbon emissions. Despite its relatively small total carbon emissions
relative to the world, Montserrat has a high emissions per capita within the worst 20 countries in the world at 12. 98
tonnes per capita in 2011. Given such statistics, Montserrat intends to demonstrate climate leadership as an island to
the rest of the world. Collectively, with other Caribbean nations, Montserrat intends to lead in support of climate
mitigation. Moving forward towards 100 percent renewable energy will reduce the use of the high efficiency diesel
generators and the total emissions the island contributes to global volumes. This positions Montserrat as a sounding
board for effective global governance dialogue. This timing is strategic given the ratification of the Small Island Developing
States (SIDS) Sustainable Energy and Climate Resilience Initiative (SIDS DOCK) Treaty on September 30th 2015 during the
United Nations General Assembly in New York, USA. 21 SIDS DOCK establishes all small island nations in solidarity against
the impacts of anthropogenic climate change and mobilizes actions towards renewable energy.

Fuel Type

Sector

Volume
(gal)

Factor (kg/gal)

Emission Total
(tons)

Diesel

Transport (Vehicles & Ferry)

325,000

3.24

1,053

Gasoline

Transport (Vehicles)

580,000

2.89

1,676

Diesel

Electricity (Power)

850000

3.24

2,754

LPG

Household (Cooking)

160000

1.9

304

TOTAL

1,915,000

5,787

Table 4: Carbon Emissions by End Use of Primary Energy Imports

20

This project was implemented by the previous administration. Geothermal projects take a minimum of four years to develop after resources have
been proven. During this time, MUL hopes to utilize these generators as renewables are phased into the electric system. The generators will be
utilized as back up in the case of emergencies faced by the island. https://devtracker.dfid.gov.uk/projects/GB-1-202374/documents
21 SIDS DOCK (2015) http://sids-l.iisd.org/news/sids-dock-treaty-enters-into-force/.

24

Appendix C: Key Energy Stakeholders


ACCESS TO ENERGY IS CRITICAL TO LIFE, QUALITY OF LIFE AND DEVELOPMENT.
Framed in this way all individuals and entities in a society are, at some level a stakeholder with Government. In fact,
anyone who pays for energy would resent being excluded from the list of stakeholders.
The key energy stakeholders in Montserratian society are:

Government
Importers and retailers of petroleum products
MUL
Montserrat Chamber of Commerce & Industry Inc.
The Montserrat Taxi Association
Montserrat Hospitality Association
Montserrat National Trust
Montserrat Farmers Association
Montserrat Boaters & Fishers Association

Each of these groups has an interest in the development of a National Energy Policy and strategy and a role to play in its
successful implementation.

25

Appendix D: Identification of the Energy Sectors Strengths, Weakness, Opportunities and Threats
The Strength, Weakness, Opportunities and Threats (SWOT) represents the internal assessment of the sector issues while
the consideration of the likely opportunities and threats represents the analysis of the impact on the sector of the external
environment.
The SWOT analysis, when considered with the energy sector situation in Montserrat, allows the identification of the goals
and policy actions that can be employed to foster the strengths of the sector, address the weaknesses, capitalize on the
opportunities and mitigate the threats to the long-term development of the sector.
Strengths

Weaknesses

-Has good proven renewable energy resources,


particularly in the form of
geothermal and solar

-Growing dependence on imported


fossil fuels
-No known fossil fuel resources

-Has proven geothermal energy resources


The current net geothermal power generation
capacity of a single well is 1.3 MW (MON#1) or 1.7
MW (MON#2)22. As the islands current peak load is
approximately 2.1 MW23, we propose the drilling of
a 3rd well to meet the base load, to provide for near
term demand growth, and end a dependence on
diesel power except as a backup.
-Has an established petroleum supplier and
distributor
-Has a well-established power production and
distribution system with more than 99 percent of
the population having access to electricity
-73 percent of the power companys diesel plant is
less than 20 years old24

-High and growing energy import bill


-High cost of electricity (the highest in the OECS in
2014)26
-The absence of, and urgent need for this new policy
as perceived by stakeholders.
-No recent development of new renewable energy
supply (the most recent study was wind energy in
2008)
-Large volume of used car imports, significant and
growing stock of energy-inefficient motor vehicles
-Rugged terrain imposes constraints on physical
development and maintenance of projects and
transportation efficiencies

-Relatively low electricity distribution losses by


Caribbean standards (approximately 11 percent)25.
-Government oversight of the electricity and energy
sectors

22

Montserrat Geothermal Well Long Term Test Report Capuano Engineering Company October 2014
Montserrat Utilities Limited
24
Montserrat Utilities Limited
25
Caribbean Electric Utility Services Corporation (CARILEC) Electricity Tariff Report 2014
26 Caribbean Electric Utility Services Corporation (CARILEC) Electricity Tariff Report 2014
23

26

Opportunities External

Threats External

-Energy Efficiency is a small but growing interest


which could be nurtured to capture early cost
savings

-Continued high dependence on imported


petroleum products
-Continued volatility of oil prices

-Existence of proven technologies to exploit


geothermal and other renewable energy
sources
-Favorable and ongoing relations with multilateral
development institutions

-Potential impact of natural hazards on


the energy sector particularly the Soufriere Volcano
on the geothermal development
-Geopolitical influences on international
energy supply and demand

-Potential to be a Caribbean Center of Sustainability


-Relatively small population and geographical area
may make this location a good trial area for
developing renewable energy and smart grid
technologies

-Potential impact on local economy of


high energy prices
-Potential impact on international economic
competitiveness caused by chronically high
energy costs and inefficient energy
use

27

Appendix E: Map of Montserrat Indicating the Electrical Grid Distribution

28

29